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Trust Ledger

Commission Bylaw 604 requires that all brokerages maintain an electronic version and/or hard copy trust ledger for their real estate transactions. The following information must be recorded in the trust ledger: name(s) of the buyer and seller; property address; dates and amounts of the trust funds received and disbursed, a running balance of the trust funds held; and a transaction number (if a file numbering system is being utilized).

EXAMPLE OF TRUST LEDGER
ABC REALTY LTD.
Trust LEDGER

Date	Description	File #	Folio	Amount Received DR.	Amount Disbursed DR.	Balance
June 12	Deposit - 3929 8th Street Brown to Smith	Year-001		2,000.00		2,000.00
June 12	Deposit - 1517 Taylor Street Adams to Black	Year-002		5,000.00		7,000.00
June 15	Deposit - 1910 Preston Avenue Jones to White	Year-003		3,000.00		10,000.00
June 18	Deposit - 1501 - 101st Miller to Green [Deposit held 90-day GIC #6789] [Interest payable direct to Green]	Year-004		20,000.00		30,000.00
June 19	Deposit increase - 3929-8th Street Brown to Smith [Total Deposit held in Special Trust] [Acct.#34567] [Interest payable direct to Smith]	Year-001		3,000.00		33,000.00
June 23	Deposit - 1414 Quebec Ave Folk to Toth [Total Deposit held in Special Trust] [Bank of Canada Savings Account] [#54321, Interest payable direct to Toth]	Year-005		15,000.00		48,000.00
July 12	Commission to General 1517 Taylor Street Adams to Black	Year-002	CK001		5,000	43,000.00
July 21	Commission to General 3929-8th Street Brown to Smith	Year-001	CK002		5,000	38,000.00

Some brokerages may find that creating individual client trust ledger cards for each trade in real estate helps keep track of their deals. Information on client trust cards, although file specific, is the same information already recorded in the client trust ledger. The following is an example of a client trust card:

EXAMPLE OF INDIVIDUAL TRUST LEDGER



Year		Items	Folio	Disbursements	Receipts	Balance
June	12	Deposit			2,000.00	2,000.00
	19	Deposit increase			3,000.00	5,000.00
		[Deposit held in Special Trust #345-67]
		[with interest earned payable direct to Smith]
	21	Commission to general	CK002	5,000.00		---- --

NOTE: Interest earned from Special Trust accounts may be paid direct to the beneficiary (client) by the financial institution. The issues to be concerned with are:

1. all parties to the transaction aware of the interest payment provisions as this was likely written into the Contract of Purchase and Sale; and
2. the interest paid generates a T-5 and must be reported to Canada Customs and Revenue Agency in the year received.

The Saskatchewan Real Estate Commission holds registrants responsible for the accuracy of trust account information.